Head of Operational Risk Capital Management & Scenario Analysis

Job description

Role Title: Head of Capital Modeling, Analytics and Scenario Analysis
Business: Global Operational Risk
New or Existing Role? Existing
 
Role Purpose
Sponsors the Group Operational Risk Capital Model and its ongoing enhancement working with GRA and owns its Owns the effective implementation and on-going enhancement of the Group Operational Risk Capital Model, and supporting Scenario Analysis and Stress Testing processes; as well as all key components of HSBC’s Group-wide operational risk framework.
Owns the operational risk components of the Internal Capital Adequacy Assessment Process (ICAAP), including submission of baseline capital estimates, forecasts, stress tests, and the integrity and governance around supporting processes.
Interacts with regulators and industry peers to ensure that HSBC’s approach to operational risk quantification and use represents best practice, and delivers value to our business whilst satisfying the requirements of diverse global regulation.
Will be a key part of the Group centre of excellence in operational risk, providing advice and guidance on the quantitative estimation and management of operational risk to the HSBC operational risk community and to senior business stakeholders
 
Key Accountabilities
Impact on the Business
Oversees the capital calculation and allocation processes that quantify the operational risk exposures of HSBC’s businesses against their stated appetite tolerances
Integrates Capital, Scenario Analysis and Stress Testing outputs for operational risk more closely into business decision-making, including investment decisions.
Builds a culture within the organization that embraces effective quantitative assessment of operational risk.
Oversees the adequacy of operational risk scenario assessments across the organization, both for risk quantification and for management insight purposes.
Acts as the primary coordinator of regular Stress Testing exercises, for regulators and for internal purposes.
Works effectively with Regional Operational Risk and Global Business Operational Risk leadership teams, and with GMO Functions.
 
Customers / Stakeholders
The holder of this role will be a key part of the Group centre of excellence in operational risk, with stakeholders including:
 
Regional and Global Business operational risk functions
Regional and Global Business senior management
Global Risk Analytics (GRA) who develops, validates and owns Operational Risk models and provides quantitative analysis for Operational Risk measurement.
Relevant internal governance committees, including managing the agenda of the Operational Risk Model Oversight Committee (ORMOC) and providing input to the Group Operational Risk Committee (GORC)
Internal, external, and regulatory auditors and reviewers
Key banking regulators relevant for HSBC’s global operations
 
Leadership & Teamwork
Ensure that resources and infrastructure are adequate to support the robust quantitative assessment of operational risk within the organization
Train and mentor business and operational risk participants in the operation of the Capital Model, and in the Scenario Analysis and Stress Testing processes
Drive high performance culture through training and support, and by clearly articulating accountabilities and measuring performance against them
 
Operational Effectiveness & Control
Ensure that the governance processes around operational risk assessment are effective throughout the organization, and commensurate with requirements
 
Major Challenges
The jobholder:
 
Needs to be able to engage with senior business and operational risk stakeholders, and provide robust, data-driven challenge to their operational risk assessments in an effective but constructive manner
Needs to be a highly effective communicator who is able to take complex mathematical concepts and distil them into simple messages that non-quantitative stakeholders can understand, and at an appropriate level of detail for the intended purpose
Needs to be highly numerate but also understand the wider business and regulatory context in which the numbers are used, and has to be able to negotiate a balance between numeric rigor and practical considerations with diverse stakeholders
Must be able to effectively prioritize development and maintenance activities to achieve key outcomes, and be able to adapt those priorities to changing circumstances and evolving regulatory requirements
Needs to be aware of the human factors present in eliciting risk estimates, and able to design and enhance related processes (e.g. Scenario Analysis) to reduce biases, but also ensure that those processes remain effective and engaging for participants
Must be able to support business initiatives without compromising standards of operational risk assessment
 
Role Context
·         The nature of the role requires close working contact with senior executives and all business areas
The jobholder has to possess excellent knowledge of banking regulations and operations, and audit and control concepts, in order to develop a robust, effective, and repeatable process for risk estimation. In addition, the jobholder is expected to be highly organized and to act independently and exercise broad discretion with minimal guidance and supervision.
The importance of operational risk has increased over recent years and has the potential to be one of the most influential value added services available to senior management and the board.  Jobholder’s ability in identifying major risk areas and key control weaknesses poses significant impact on businesses in meeting their strategic objectives.
 
Management of Risk
The jobholder will also continually reassess the operational risks associated with the role and inherent in the business, taking account of changing economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings, and the impact of new technology.
This will be achieved by ensuring all actions take account of their impact to our operational risk exposure, and also by addressing any areas of concern in conjunction with line management and/or the appropriate department.
 
Observation of Internal Controls
The jobholder will also adhere to and be able to demonstrate adherence to internal controls. This will be achieved by adherence to all relevant procedures, keeping appropriate records and, where appropriate, by the timely implementation of internal and external audit points, including issues raised by external regulators.
The jobholder will implement the Group compliance policy by managing compliance risk in liaison with Global Head of Compliance, Global Compliance Officer, Area Compliance Officer or Local Compliance Officer. The term ‘compliance’ embraces all relevant financial services laws, rules and codes with which the business has to comply.
This will be achieved by adhering to all relevant processes / procedures and by liaising with Compliance department about new initiatives at the earliest opportunity. Also, and when applicable, by ensuring adequate resources are in place and training is provided, fostering a compliance culture and optimising relations with regulators.

Desired profile

Knowledge & Experience / Qualifications
Banking experience with a demonstrated understanding of diverse banking activities, products, processes and systems
An understanding of other areas of risk relevant for a financial institution e.g. credit, market
Extensive knowledge of the global regulatory environment for the financial services sector
Material exposure to an operations and a control environment, such as audit or compliance
Able to conceptualise the operational impact of business change
Strong communication, negotiation and influencing skills
Ability to understand complex concepts, including advanced statistics
A detailed understanding of the measurement and analytics in respect of Operational Risk.
Able to cope with pressure and tight deadlines.
Able to negotiate and interact effectively at all levels of management
 
  
We are an equal opportunity employer and are committed to creating a diverse environment.